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Could we see $20 per barrel price of oil?


The answer is yes, and the ones who will suffer? Well, everyone will, but North American producers, particularly in the shale and bitumen markets, will suffer the most.

Why is this happening? Well North American production has increased and nobody else worldwide is declining their outputs. Factor in global demand is low and you get a simple ECON 101 picture of why prices continue to decline. Only an increase in demand coupled with reduction in supply will return the market to a sense of equilibrium. But $100 oil may be done for half a generation or forever.

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